Manulife InvestReady Growth
December 5, 2024
Singlife Legacy Indexed Universal Life
January 1, 2025
Singlife Elite Term II is a flexible and affordable term life insurance plan that offers regular and limited pay options. Review this plan that can be customized to your unique needs. It’s ideal for those who are looking for more affordable protection coverage and higher protection for income and support of dependents, or customers who are looking for protection coverage with choices of policy terms.
Elaboration of some features of Singlife Elite Term II (with Limited Pay)
- The plan offers two options: Regular Pay and Limited Pay. Regular Pay means you will pay premiums regularly throughout your coverage, and Limited Pay means you will only pay premiums for a specified period.
- Singlife Elite Term II (Regular Pay) offers a lump-sum payout if you die or are diagnosed with terminal illness, choice of coverage duration, and automatic renewal. You can also increase your coverage without the hassle of medical check-ups at key milestones. There’s also the option to convert your term life insurance plan into a new endowment or whole life plan without medical underwriting.
- Singlife Elite Term II (Limited Pay) offers coverage up to age 99 and a choice of premium term. You can enjoy a longevity reward (100% of your total premiums paid for the base plan at the end of your coverage term). You can also get money back with Surrender Benefit if you no longer need coverage. You can surrender your policy from the third policy year.
- Both plans allow you to add on riders for added protection. Available riders include TPD Advance Cover Plus III, CI Advance Cover Plus IV, MultiPay Critical Illness Cover IV, Early Critical Illness Cover II, Singlife Big 3 Critical Illness Cover, Critical Illness Premium Waiver II, Payer Critical Illness Premium Waiver II, and Payer Premium Waiver Benefit.
Take Note of the Following for Singlife Elite Term II:
- No guaranteed returns: Like other term life insurance plans, Singlife Elite Term II does not offer guaranteed returns. Customers looking for investment components should look elsewhere.
- Premiums for the regular pay plan with the guaranteed renewable option are not guaranteed and could increase upon renewal. This means that you may have to pay more for your coverage as you get older.
- The limited pay plan has a surrender benefit of only 30% of total premiums paid for the base plan upon full surrender on or after the start of the third policy year until the end of the premium term. This means that you will lose a significant portion of your premiums if you surrender your policy early.
- The limited pay plan only pays 80% of the total premiums paid for the base plan upon full surrender from the end of the premium term onwards.
- The premiums for some riders are not guaranteed. This means that the insurance company can increase the premiums for these riders at any time.
Case Study of Singlife Elite Term II (Limited Pay)
- Victor, a 40-year-old non-smoker, is married with two children and desires a protection plan that serves as a legacy plan and corresponds to his working years.
- He chooses the Singlife Elite Term II (Limited Pay) plan, opting for a coverage term to age 99. This means that he will be covered until the age of 99, and his beneficiaries will receive the death benefit if he passes away during this time.
- He selects a premium term until age 65, choosing a coverage of S$3 million. This means that he will only pay premiums for 25 years, until he turns 65, even though the coverage extends until age 99.
- Victor also chooses a rider for total and permanent disability protection.
- His total annual premiums until age 65 will be S$24,287.05.
- Over 25 years (from age 40 to 65), he will pay a total of S$607,176.25 in premiums.
- From the third policy year until the end of his premium term (age 65), Victor’s policy will acquire a Surrender Benefit of 30% of the total premiums paid to date for the base plan. This means that if Victor decides to surrender his policy during this time, he will receive a portion of his premiums back.
- For example, if Victor surrenders his policy at age 42, he will receive a Surrender Benefit of S$470,801.
- At age 65, after his premium term ends, Victor can still surrender his policy and receive a Surrender Benefit of 80% of the total premiums paid for the base plan.
- At age 99, if Victor is still alive, he will receive a Longevity Reward of S$588,501, which is 100% of the total premiums paid for the base plan.
- If Victor dies at any point during the coverage term (age 40 to 99), his loved ones will receive the death benefit of S$3 million.
Some things to note. This review post will get dated. And the product might not be available for new subscriptions at some point. Hopefully this serves as reference for future policyholders who have forgotten what they have taken up.
There can be shifts in planning narratives over time. For example, limited premium tenures gain popularity over the years because people are less confident of their future earning capacity or sustainability of income levels. Regular payout features gained popularity when more and more people are in tune with the FIRE (Financial independence retire early) movement. An extended period of low interest rates brought down insurance products’ returns yield for policy holders, but now in a higher interest rates environment, things have changed.
Singlife Elite Term II (with limited pay) may or may not fit into your financial plans. Understand that there is no best plan for all time, but there is a method to objectively facilitate your decisions. Read more about it here.
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